Columbia sportswear

Columbia Sportswear Company (NASDAQ:COLM) – Why has BofA upgraded Columbia Sportswear stock?

Strong selling, aided by cold weather conditions in January and February, should support channel restocking and give an edge to Columbia Sportswear Company (NASDAQ: COLM) Fall 2021 order book, according to BofA Securities.

The Columbia Sportswear analyst: Alexander Perry upgraded Columbia Sportswear’s rating from Neutral to Buy, while raising the price target from $108 to $128.

The Columbia Sportswear Thesis: The company looks set to benefit from “a stronger F21 recovery compared to our initial expectations,” Perry said in the upgrade note.

“We believe COLM was better positioned than other brands and retailers for West Coast port congestion delays that are straining the global supply chain, as COLM is able to utilize a large portion of the stocks available for its Spring/Summer ’21 shipments…. Our analysis suggests that delays at West Coast ports are improving,” he added.

Columbia Sportswear is seeing an acceleration in e-commerce momentum, the analyst noted. Columbia Brand’s web traffic jumped 37% since the start of the quarter, compared to growth of 15% in the fiscal fourth quarter, he noted. In addition, Sorel’s web traffic is up 77% since the beginning of the quarter, compared to a growth of 17% in the fourth quarter of the fiscal year. Sorel is a footwear division of Columbia Sportswear.

COLM courses: Shares of Columbia Sportswear were up 3.75% to $111.36 at press time Monday.

Related Link: What’s Happening Today with Trading? Check in with Neal Hamilton on Benzinga’s “Get Technical” on YouTube.

(Photo by Braxton Apana on Unsplash)

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